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North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June. $ Cash

North Point Ltds management has and estimated overdraft of $10,000 at 1 June. The following information has been taken from budgets for June.

$

Cash Sales

53,000

Credit Sales

92,000

Wages (gross)

22,000

Rent

6,000

Credit purchases of trading stock

18,000

Cash purchases of trading stock

8,000

Loss on sales of asset

3,000

60% of sales credit sales are collected in the month of sale and 40% in the following month.

Credit sales for May was budgeted for $80,000

90% of credit purchases are paid in the month of purchase and 10% in the following month.

Credit purchases for May was budgeted for $22,000

Wages for May was budgeted for $15,000.

PAYG tax deductions are calculated at 20% of gross wages and paid to ATO in the following month of wages paid.

Assessment tasks

Prepare a cash budget for June. (Note: For simplicity ignore GST in your calculations).

Example Only:

XXXXXX Pty Ltd

Cash Budget

For the month of XXXX

Details

$

Receipts

Cash sales

Credit sales

July 10% x XXXX

August 90% x XXXXX

Subtotal

GST

Total Receipts

Payments

Cash purchase

Credit purchases

June 20% x XXXXX

July 80% x XXXX

Rent

GST

PAYG deductions

Wages

Total Payments

Increase in cash

Opening balance

Closing Balance

Note: the above suggested template is only an example, the months indicated under the Credit sales and Credit purchases need to be changed.

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